March 2013 - Market Updates
No Thaw in the Commercial Property Market ......wet, wet, wet did not just apply to the meteorological climate in 2012 as commercial property activity was equally lack lustre. The general theme continues to be limited demand for space whilst at the same time supply is generally dwindling as a consequence of no new build and limited Receivership/Administration casualties. The best quality offices and industrial buildings have now been taken up. We foresee that in 2013 some limited speculative development and rental incentives reducing towards the end of the year and into 2014.
The Office Market - Take up in 2012 was the lowest on record at only 135,000 sq ft, a reduction of 50% from the 2011 take up. Even stripping out the Centrica deal from the last years figures this still provides a 30% increase. The 5 year average from 2008 to 2012 is 240,800 sq ft and so this further demonstrates how the market has slowed in 2012.
The city centre office market remains strong with supply of only 60,000 sq ft in comparison with 330,000 on the ring road.
The Industrial Market - The industrial sector has seen a slight increase of 3% in take up to 521,000 sq ft. Demand is still sourced predominantly from locally based companies with the majority of deals being leasehold due to difficulties with funding.
Supply levels have reduced by 16% from 2.27 million sq ft to 1.90 million sq ft with the key deals being 66,000 sq ft sold to a confidential purchaser in Bicester and 70,000 sq ft let to All Makes 4x4 at MIlton Park.
With the only new development being 25,000 sq ft at Milton Park on Olympic Avenue we are still seeing a lack of good quality medium sized stock throughout the rest of the country.
Units over 100,000 sq ft still account for over 35% of the total supply. Land continues to be a scarce commodity.
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